Background of Study CONCLUSION AND RECOMMENDATION

1 CHAPTER 1 INTRODUCTION This chapter provides the background of the study, objectives, scope and importance of the study.

1.1 Background of Study

Palm oil production in Malaysia is one of the most highest among the producing nations. The need of Malaysia is to fare palm oil to fulfil the developing business request worldwide for oils and fats around 58 million tons by 2020 Ani and Mohamad, 2010. Further, it is estimated that local palm oil creation to increment to 26.6 million tons in 2035. Household interest of palm oil for nourishment utilization, mechanical non-sustenance uses and biodiesel is foreseen to increment by more than 200 to 1.4 million tons in 2035 Ajeng et al. 2014. Understanding the local and overall requests of palm oil, delivering and preparing palm oil should be done in the most productive methodology. In the quest for execution magnificence in amplifying palm oil creation volume and secure future gainfulness, the Malaysian palm oil plants are depending upon the hardware to be working at high efficiency and proficiency, and keeping the issue before it may happens. Broad examination of the frameworks is obliged to keep legitimate perception for diminishing item dismissal and misfortunes, creating parts without imperfection with a specific end goal to 2 discover the inefficiencies of the creation framework. Speedy wastefulness recognizable proof utilizing execution measures are key as a part of creation administration to gauge genuine execution and contrast it with the hypothetical execution. Joachim 2009 has stated that sustainability has turn into an extraordinary concern around the world, highlighting the issues of environment and social effect particularly in the assembling level. The estimation of supportability execution like financial, ecological, and social related variables are urgent to increase completive point of preference for Malaysian palm oil generation. European Union is the second biggest merchant of palm oil, the oil palm industry expected to meet the higher desire of these abroad clients on the natural execution of the business. These manageability execution desires can gradually start to change into requests in the commercial centre and may even turn into a business sector obstruction later on maintainability has been coordinated into assembling administration regions, for example, item improvement, production network administration, incline producing, and is exploration, endeavour is made to coordinate supportability into assembling execution by consolidating gear proficiency with reasonable assembling execution.

1.2 Problem Statement